Wednesday, June 19, 2024
HomeCryptocurrencyTop Analyst Sets $163 Target for Solana (SOL), Citing Bull Flag Formation

Top Analyst Sets $163 Target for Solana (SOL), Citing Bull Flag Formation

Solana (SOL), the high-speed layer-1 blockchain, is creating patterns that are exciting the community. After a turbulent December, Solana has stabilized in the $100-$110 range, presenting a critical technical formation.

According to prominent crypto analyst Ali (@ali_charts), Solana (SOL) is forming a potential bull flag on the hourly chart.

Read Also: Does Solana (SOL) Ever Require Layer-2 Solutions? Co-Founder Yakovenko Explains

What is a Bull Flag?

A bull flag is a bullish chart pattern in crypto trading. It typically occurs after a strong price movement upward (flagpole), followed by a consolidation period with a slight downward drift, forming a rectangular flag shape. Traders often interpret this pattern as a potential continuation of the previous uptrend, anticipating another upward move.

In Solana’s case, the flagpole would be the previous surge from $75 to over $120 when Solana joined the top 4 cryptocurrencies. The current sideways consolidation between $100 and $110 represents the flag itself. A decisive break above the upper trendline at $110 would confirm the pattern.

Ali sets the target for the subsequent surge at $163. The decisive break he is looking for could unleash a surge towards $163. This prediction was met with open arms from the community, with many expressing their excitement for the impending surge.

Will Solana (SOL) Reach $163?

While the bull flag is encouraging, it’s not a guaranteed prophecy. A break below the lower trendline could invalidate the pattern and signal further downside. Solana is trading at $101, currently above $100, which is a key support level for a continued price uptrend.

Failure to break through could result in a retest of the lower trendline, potentially dropping to around $85, or even a breakdown of the entire pattern. However, a confirmed breakout presents a potentially lucrative opportunity for the bulls.

Read Also: XRP and Solana (SOL) Holders Have To Take Note of This Announcement

The Solana ecosystem experienced some turmoil recently, as some Solana-based meme coins turned out to be rug pulls, negatively impacting confidence in Solana and its ecosystem.

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Solana’s bull flag, while tempting, requires careful consideration. Technical analysis provides valuable insights, but these predictions can fall short. Fundamental factors, risk management, and skepticism are essential when navigating the crypto market.

However, analysts believe that Solana can surpass $200 in 2024. Ali’s bullish prediction could start the cryptocurrency’s journey to that astonishing target.


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Tobi Loba
Tobi Loba
Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.
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